FedACH Risk® RDFI Alert Service
The FedACH Risk RDFI Alert Service (PDF) provides notice of noteworthy conditions within a receiving depository financial institution’s (RDFI) incoming FedACH® Service files, batches and entries. It is an information-only service that alerts the RDFI and/or its account holders to potential significant fraud origination errors and conditions of interest. The service is available to any RDFI that receives FedACH transactions, regardless of the receiving point or file delivery setup of the financial institution or its service provider.
Interested in learning more about FedACH Risk Management Services? Contact us.
Table of Contents
Key Features
- Create specific alerts based on multiple selection criteria
- Receive near-simultaneous file- and batch-level alerts when the Federal Reserve Banks transmit a file, even if you use a processor that does not distribute your files to your institution until later in the day
- Administer the service for multiple ABAs through a single access point by signing up to be a service participation point
- Research alert notifications by drilling down into batches in the FedLine Web® Solution screens to view entry-level information and to derive returns
How It Works
- The user-friendly service monitors FedACH Services output batches, files and/or entries based on alert criteria thresholds you establish in the service. A choice of ACH field combinations lets you configure alert criteria to address a variety of information needs. Review available alert criteria definitions below:
| ACH Field Name | Description | How it mitigates risk? |
|---|---|---|
| Originating ODFI Identification | ODFI ABA | Identifies batches from a financial institution the RDFI considers as having poor origination practices |
| Company Name | Name assigned by the originator to identify its transactions to the receiver | This name will often not change as an originator or third party moves between ODFIs. Some problematic originators will move between ODFIs on a regular basis. |
| Company Identification | Identifier generally assigned by the ODFI used to identify an originator | When combined with ODFI ABA, this field provides the most accurate method for identifying a single originator from a particular ABA |
| Standard Entry Class Code | Code used to identify the payment type | RDFIs can use this field to identify payment types that it may perceive to be of greater interest relative to potential risk |
| Company Entry Description | Payment description passed to the receiver’s bank statement | This name will often not change as an originator or third party moves between ODFIs. Some problematic originators will move between ODFI on a regular basis |
| Entry + Addenda Count | The number of entries and supplemental information contained in a batch | RDFIs can use this field as a gauge for volume coming from a particular originator within a single batch |
| Entry Count | The number of entries contained in a batch | RDFIs can use this field as a gauge for volume of entries coming from a particular originator within a single batch |
| Debit or Credit Dollar Amount | Dollar value of the transactions contained in a batch or entries | Gives the RDFI a view of its activity by dollar amount |
| Settlement Date | The date on which a payment settles in the RDFI’s Fed account | Same-Day entries and returns can settle in the RDFI’s (or its designated Correspondent’s) Fed account on the same day as the transactions are processed in accordance with the FedACH Processing Schedule. At a significant dollar value, these transactions could impact balances in the RDFI’s Fed account late in the day. |
| Forward/Return Indicator | This identifies the batch as forward or return | RDFIs can use this indicator as part of its criteria to view a specific batch of interest |
- The service lets you build file-, batch-, and entry-level alert criteria based on combinations of requirements
- The service compares each outbound file and the batches it contains against the criteria you have defined
- The service sends email alerts to your designated points of contact on any batches or files exceeding your thresholds at the time of each FedACH Service file distribution
- FedACH Services transmits the batch- or file-level email notifications nearly simultaneously with the release of the file, even if you use a processor that doesn’t distribute your files to your institution until later in the day
- For entry-level criteria, the service compares a designated receiver’s entries against criteria at the close of the FedACH Services processing day, and conditions exceeding the criteria generate automatic email notifications to your designated account holder contacts
- A scan results screen is available in FedLine to easily view more detailed information when a batch- or entry-level alert is triggered. You can use these screens to drill down and derive a return for the entry.
Service Benefits
Compliance and risk management
- Strengthen and support your institution’s overall risk management strategy
- Utilize historical reporting features to help address audit and compliance concerns
- Reinforce your risk management processes by making your institution’s ACH receipt more visible to your institution, even if you outsource your FedACH processing or have complex organizational structures
Operational efficiency
- Gain valuable time for research and action from notifications that arrive throughout the day
- Initiate research or due diligence based on notification of incoming conditions, such as batches containing IAT entries or batches of unusually large size
- Prepare for situations that could impact your institution’s reserve account, such as late-day returns, by setting criteria to alert on batches with high-dollar values
Funds management
- Help CFOs guard the institution’s financial position and Fed account by alerting on last minute shifts in balances
- Provide information to help manage funding liquidity
- Send alerts on activity that could create large fluctuations in the institution’s financial position
Client services
- Communicate the arrival of incoming entries of interest to key account holders by combining entry-level alert thresholds with automatic email notifications
- Notify of the arrival of entries such as corporate payments, cash concentration transactions, tax refunds and grant money
- Proactively assist customers protect themselves by setting alert criteria for conditions such as incoming debit entries in excessive dollar amounts, large dollar return items or entries with SEC codes of particular concern such as those identifying converted checks
Sample batch- and entry-level notification emails
Review illustrations of batch-level and entry-level alert emails
Example batch-level alert notification email
Example entry-level alert notification email
Service Setup
To start using the FedACH Risk RDFI Alert Service, visit the Service Setup page or contact your relationship manager.
Access Easy-to-Use Tools
- FedACH Risk RDFI Alert Service Frequently Asked Questions
- A list of your Federal Reserve Bank contacts, including your FedACH and Check Services Customer Support.